Forensic services & fraud news and resources

TOPICS

April 1, 2001

Financial Reporting

FASB issues employee compensation guidance ( www.rutgers.edu/accounting/raw/fasb/eitf/eitfissu.html#00-23 ). FASB issues an exposure draft on accounting for goodwill ( www.rutgers.edu/accounting/raw/fasb/news/nr021301.html ). The comment period ended March 16. Accounting for financial asset transfers, servicing addressed in FASB report ( accounting.rutgers.edu/raw/fasb/project/125summary.html#Q&A ). SEC issues final rule that says mutual funds must disclose after-tax

April 1, 2001

Auditing

For news from the AICPA and state societies, visit www.cpaweb.org , which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites. SBA earns high marks for internal control framework ( www.sba.gov/news/current01/01-08.txt ).

April 1, 2001

Legal

SEC adjusts civil penalty amounts for inflation ( www.sec.gov/rules/final/33-7946.htm ). Effective February 2.

April 1, 2001

Government Accounting And Auditing

GASB user guides explain government financial statements ( www.rutgers.edu/accounting/raw/gasb/pub/userguides.html ).

April 1, 2001

FYI

IIA sponsors report on audit committee best practices ( www.theiia.org/ecm/bookstore.cfm?doc_id=1257 ). GAO appoints new members to auditing advisory council (Not yet posted on GAO Web site). New members appointed to FASB ( www.rutgers.edu/Accounting/raw/fasb/news/nr_schipper.html ; www.rutgers.edu/Accounting/raw/fasb/news/nr_wulff.html ). Bush names SEC Commissioner Unger as acting chairman ( www.sec.gov/news/press/2001-20.txt ). Labor department sets

April 1, 2001

International

EU wants all listed companies to use international accounting standards by 2005 ( www.iasc.org.uk/news/cen8_193.htm ). G4+1 shuts down as IASB starts up ( www.rutgers.edu/accounting/raw/fasb/IASC/g4+1jan01.html ). IASC establishes international accounting standard-setting board ( www.iasc.org.uk/news/cen8_511.htm ). U.K.’s audit board seeks feedback on standards convergence handbook ( www.asb.org.uk/publications/publication320.html ). Comments are due by

April 1, 2001

Investments

SEC acts to improve mutual fund directors’ independence ( www.sec.gov/rules/final/34-43786.htm ). Effective February 15.

March 1, 2001

Mergers And Acquisitions

“Shadow panel” says more “financial modernization” legislation needed ( www.aei.org/shdw/shdw166.htm ).

March 1, 2001

Technology

UN-led international alliance releasing e-business version of XML ( www.oasis-open.org/news/oasis_news_12_12_00.shtml ). AICPA picks 2001’s top 10 technologies ( http://toptechs.aicpa.org ). For daily news from the AICPA and state societies, visit www.cpaweb.org , which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites.

March 1, 2001

Fraud

Attempted check fraud soars, says American Bankers Association ( www.aba.com/Products/PS98_218950.htm ). SEC alerts auditors to fraudulent financial reporting techniques ( www.sec.gov/news/speeches/spch454.htm ).

March 1, 2001

Small Business

SEC creates Office of Small Business Policy ( www.sec.gov/news/digests/12-14.txt ).

March 1, 2001

Professional Issues

NASBA’s CredentialNet facilitates equivalency verification for interstate practice ( www.nasba.org/nasbaweb.nsf/lp ).

March 1, 2001

Banking

New capital structure for federal home loan banks ( www.fhfb.gov/PressRoom/press/PR00-38capitalrule.htm ).

March 1, 2001

Financial Reporting

Levitt ends his tenure at SEC ( www.sec.gov/news/press/2000-192.txt ). FASB tentatively decides against write-downs of preexisting goodwill ( www.rutgers.edu/Accounting/raw/fasb/news/nr122000.html ). SEC, standard setters recommend reporting financial instruments at fair value ( www.sec.gov/news/speeches/spch436.htm ; www.rutgers.edu/Accounting/raw/fasb/news/nr010501.html ) FASB’s derivatives group adds to guidance on Statement no. 133 ( www.rutgers.edu/Accounting/raw/fasb/ ). FASAC survey

March 1, 2001

Auditing

Chief accountant says SEC will enforce new independence rules ( www.sec.gov/news/speeches/spch445.htm ). SEC answers frequently asked questions on auditor independence ( www.sec.gov/offices/account/audinfaq.htm ). GAO: Many federal agencies are mismanaged, unprepared for audits ( www.gao.gov/pas/2001/d01241.pdf ).

March 1, 2001

Follow Fraud to the Likely Perp

s CPAs it is important to understand both the methods and motivations at play when otherwise ethical executives participate in fraudulent financial statement schemes. According to a 1999 study by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), in three-quarters of fraud cases the chief executive officer is

March 1, 2001

Government Accounting And Auditing

GASB issues exposure draft to clarify Statement no. 34 ( www.rutgers.edu/Accounting/raw/gasb/news/nr010801.html ). Comments due by March 16. FASAB seeks comments on plan to omit stewardship category from federal reports ( www.financenet.gov/financenet/fed/fasab/dec_00_jan_01.html ). Comments due by March 15.

March 1, 2001

International

IASC releases study on accounting by mining, petroleum industries ( www.iasc.org.uk/docs/extr/ip/iss_sum.pdf ). Comments due by June 30. Outgoing IASC board recommends future rule-making priorities ( www.iasc.org.uk/docs/bd_stmt.pdf ).

February 1, 2001

A Nice Niche—If You Minimize Liability Risk

EXECUTIVE SUMMARY INCREASED ACTIVITY IN ESTATE and succession planning and mergers or acquisitions involving small to midsize businesses has fueled demand for business valuation (BV) services. BV malpractice claims arise most often from a tax planning or consulting engagement that—at the client’s request—morphs into a BV in mid-transaction. THE PREDOMINANT

February 1, 2001

Why Employees Commit Fraud

t is important for CPAs to understand what motivates people to commit fraud so they can better assess risk and assist employers or clients in implementing appropriate preventive and detective measures. One element common to most occupational fraud offenders, from the CEO to the rank-and-file employee, is that almost none